Holden funding contract will be binding

GM Holden says the contract it signs with the federal government for funding to support its Australian operations will be binding.

Holden chairman and managing director Mike Devereux said the company had spoken to federal Opposition Leader Tony Abbott, as well as the Labor government which announced the funding package on Thursday.

"I think both sides of the equation are absolutely committed to manufacturing things in this country," he told Sky News.

Under the funding deal, Holden will get a $275 million taxpayer lifeline.

Industry Minister Greg Combet said the final contract with Holden was yet to be signed.

Asked if he expected the deal to hold if the federal coalition won government, Mr Devereux said:

"Over the next couple of months, we will be entering into binding contracts with the government of Australia.

"Those contracts will include very strict milestones for both investment, for R&D (research and development) and for those economic benefits that I described earlier."

Of the funds, federal Labor will provide $215 million, with the South Australian and Victorian governments contributing the remainder.

In return, Holden has agreed to spend more than $1 billion to ensure it continues to provide jobs in Australia designing, engineering and building cars until at least 2022.